CreditMarket Index: The Average Effective Rate on Mortgage Loans Has Increased to 21.52% Since Mid-July for the First Time

September, 14 2011 12:48
Index.KreditMarket

CreditMarket Mortgage Index has increased by 1.15 p. p. since 21 July for the first time. As of 14 September 2011 its rate was 21.52% (annual effective rate in UAH).

Denis Rakovsky, KreditMarket Sales Director: “Following other types of loans, the average effective rate on mortgage loans has increased. At the same time, this increase is explained by multidirectional trends: one of the banks has lowered both the nominal rate and the loan processing fee resulting in decrease of the maximum effective rate from 24.93% to 23.78% on our list. The second bank has lowered its nominal rate, but increased the loan processing fee. In general, the average effective rate on mortgage loans was raised by this bank. The third bank’s partner increased the insurance cost. On the whole, it has resulted in the CreditMarket Mortgage Index growth.

We will remind you that as of 6 July 2011, on the first estimate day, the Index was 19.22%. Thus, the growth of the average effective rate on mortgage loans has totalled 2.30 p. p. for over 3 months.

Information

CreditMarket Mortgage Index is calculated on the basis of loans granted at 70% of a purchase price of secondary market apartments for the term of 10 years. Promotional offers and credit on forfeited pledge excluded. The redemption scheme is annuity, or in case of no proposals – a serial loan. Currency – UAH. Principal is up to UAH400, 000 (the cost of an apartment – UAH571,500).